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State of Play
- A federal judge has ruled that the popular video lottery terminals, or “no‑chance” slot machines, in Missouri convenience stores meet the legal definition of gambling devices and are unlawful outside licensed casinos.
- This decision adds legal pressure while Missouri lawmakers debate a move to a state‑run video lottery system.
US District Judge John Ross issued a 25‑page ruling finding that video lottery terminals, or VLTs, the slot‑style machines operating in bars, gas stations, restaurants, and convenience stores across Missouri qualify as illegal gambling devices under state law.
Ross cited an October federal jury verdict that ordered Torch Electronics to pay $500,000 after a competitor argued Torch repeatedly represented its games as lawful.
The judge wrote that Torch’s machines “meet the statutory definition of ‘gambling device’ and are therefore illegal under Missouri law when played outside a licensed casino.”
Attorney General Catherine Hanaway has pushed enforcement, filing suits against retailers and saying her office is assisting a federal probe into potential money‑laundering and banking issues. Torch says it will appeal once remaining issues are resolved.
Legislation would make VLTs legal
For players, the immediate takeaway is that many convenience store games now face legal vulnerability. Machines could be removed, retailers prosecuted, or settlements enforced.
Operators that relied on unregulated machines may confront lawsuits, penalties, and lost revenue. Torch and related businesses have used lobbying, PAC donations, and legal action to defend their market.
For the wider market, Missouri’s pending legislation would legalize a licensed video lottery network. Under the legislation, licensed retail machines would be required to pay out at least 80% of wagers, with roughly one‑third of profits funding education and a 3% tax directed to local governments.
The bill also proposes a one‑year wind‑down window for unregulated operators and an annual fee per machine to fund disability services – changes that shift profits, compliance costs, and consumer protections toward a regulated framework.
Based on reporting by Jason Hancock for the Missouri Independent.
